heading south, page-56

HI MTL
dont know about the Euro USD,,seems everyone is short USD........seems anyone that interferres with thier currency in the end get caught as it goes up not down,,,the rise and rise and rise of the euro is just poping markets but in the end its rise is crimping exports, from china,,,,,,,,,exports from eu will fall,,,,,,etc etc....

The theme I remeber being promoted from june was buy emerging markets as they will provide the growth in the 2H along with improving GDP from USA of over 2PC,,,,,data reports the other week showed net infows of 12Bln into emergin markets

HI Bolivia,,I didnt say or mean to imply that the financial system is going to collapse,,,I dont think that as we know the banks will be given an LTRO or some other bailout to cover thier mounting losses,,,,I think stock prices are overdone is all give the clear economic data..................easter time china was a concern,,they said never below 8,,,then they redid their 5 year forecast and it was 7.6 but still the bulls said it will underestimate and over deliver,,,reality is its down the data is as bad as march 09 and falling,,EU, I dont even care about the bailouts, its all a round robin,,,,reality is they are going into a recession and unempoloyment is still rising from extreme levels to higher levels ..........

Many people have discovered again value traps,,buying the stock for headline yield, its cheap only to see thier capital value fall more..........

Earnings are going to fall, the E in PE has to fall as unempoloyment, GDP, PMI reflecting activity are all falling...

BHP and RIO are a classic,,,,,only a few months back they were calling 40, said 34 would never break, long term 50,,,DIV DIV DIV,now look at them,,,,,the div isnt going to cover that capital loss in value,,,it may get back over time it may not,,,either way time is the killer......

I think its justified to be cautious after such an incredible rally and the results achieved